Artificial Intelligence in Education Market Growing at 43.3% CAGR Reach USD $88.2 Billion by 2032 Globally

The AI in education market is growing due to personalized learning, adaptive tech, virtual assistants, and smart tutoring solutions.

WILMINGTON, DE, UNITED STATES, March 7, 2025 /EINPresswire.com/ -- According to the report, the global generated $2.5 billion in 2022 and is estimated to reach $88.2 billion by 2032, exhibiting a CAGR of 43.3% from 2023 to 2032. The report offers a detailed analysis of changing market trends, top segments, key investment pockets, value chains, regional landscapes, and competitive scenarios.

In the AI education market, AI-driven products and services undertake a range of functions, encompassing the distribution of educational materials, assessment of skills, integration of students, and the provision of adaptive instructional platforms, all aimed at enhancing the learning process for both students and educators. Software designed for training and education is integrating artificial intelligence (AI) technologies such as deep learning, machine learning, and natural language processing (NLP) to elevate performance and the overall learning journey.

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AI and ML are transforming education, from junior and higher education to lifelong learning, by reshaping teaching models and strategies. Cutting-edge technologies are enhancing student recruitment, enrollment forecasting, outcome prediction, and identifying at-risk students through personalized content and AI-powered teaching assistants, driving market growth. Leading AI education firms are streamlining processes and expanding operations.

Educators and students must adapt, utilize underused resources, and explore new communication methods. The pandemic accelerated the shift to online learning, increasing reliance on technology and AI-driven solutions to enhance remote education. This rapid adoption presents a unique opportunity for AI providers to showcase their capabilities. Additionally, the demand for personalized learning has surged, as students require tailored support. AI systems analyze student data to provide targeted interventions, adaptive pathways, and personalized recommendations. This growing need for customized learning creates a significant market opportunity for AI solution providers.

Surge in demand for personalized education and adaptive learning, virtual assistants and smart tutoring and improvements in administrative efficiency are primarily driving the growth of the artificial intelligence in education market. However, privacy and ethical issues and access issues and equity concerns hamper the market growth to some extent. Moreover, enhanced motivation and engagement of students and data-driven decision making are expected to provide lucrative opportunities for the market growth during the forecast period.

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By technology, the machine learning and deep learning segment accounted formore than two-thirds of the global artificial intelligence in education market share in 2022, and is expected to rule the boost by 2032, owing to create personalized learning pathways and adaptive training, where the content, pacing, and mode of delivery of instruction can all be adjusted to fit the needs of particular learners. The natural language processing (NLP) segment would also display the fastest CAGR of 46.6% throughout the forecast period, owing to improve communication and interaction between people and machines, NLP focuses on teaching computers how to comprehend, interpret, and produce human language.

Based on deployment mode, the on-premise segment dominated the artificial intelligence in education market trends in 2022 and is expected to continue this trend during the forecast period. This is because of its numerous advantages such as faster processing times, lower latency, and the ability to customize and tailor the technology to specific requirements. Which further drives the demand for the on-premise segment in the global market. However, the cloud segment is expected to exhibit the highest growth during the forecast period. Cloud-based solutions offer the convenience of remote access, automatic updates, and the ability to leverage cloud computing resources for processing-intensive tasks, which further is expected to provide lucrative growth opportunities for artificial intelligence in education market forecast.

By region, North America dominated the market share in 2022 for the AI in education market, this is due to the growing presence of major market players, such as Google LLC, IBM Corporation, Microsoft Corporation, and Amazon Web Services, Inc. among others, which is expected to drive market revenue growth in the region. Thus, anticipated to propel the growth of the market. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. The rise in internet penetration and adoption of smart devices, such as smartphones, tablets, and laptops is expected to drive market revenue growth in the region and provide lucrative growth opportunities for the market in this region.

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Artificial intelligence in education market is segmented into component, deployment, technology, application, end user, and region. On the basis of component, it is segregated into solutions and services. Based on deployment, it is segregated into on-premise and cloud. On the basis of technology, it is segregated into machine learning and deep learning and natural language. On the basis of application, it is segregated into learning platform & virtual facilitators, smart content delivery, fraud and risk management, intelligent tutoring system (ITS) and others. Based on end user, it is segregated into corporate learning, K-12 education, higher education and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

COVID-19 Impact Analysis

The extent and expansion of the market for AI in education have been significantly impacted by the COVID-19 pandemic. The abrupt transition to remote learning and the demand for cutting-edge tools to enable it to have sped up the adoption of AI technology in the education sector. The increased demand for online learning tools and platforms is one of the main effects of COVID-19 on the market for AI in education. The need for online learning solutions increased as a result of the forced closure of physical campuses by educational institutions around the world.

Remotely delivering high-quality education has become impossible without the use of AI-powered platforms and technologies like virtual classrooms, intelligent tutoring systems, and personalized learning platforms. This rising need has caused the market for AI in education to grow. Additionally, the epidemic has emphasized the value of adaptive learning and personalized instruction. Educational platforms can use AI technologies to analyze student data and offer individualized learning experiences that cater to specific needs.

KEY FINDINGS OF THE STUDY

1. By component, the solution segment accounted for the largest share AI in education industry in 2022.

2. By deployment mode, the on-premise segment accounted for the largest share AI in education industry in 2022.

3. By technology, the machine learning and deep learning segment accounted for the largest AI in education market size in 2022.

4. By application, the learning platform and virtual facilitators segment accounted for the largest artificial intelligence in education market share in 2022.

5. By end user, the K-12 accounts for highest growth in artificial intelligence in education market analysis for 2022.

6. Region wise, North America generated the highest revenue for artificial intelligence in education market growth in 2022.

The market players operating in artificial intelligence in education industry are Microsoft Corporation, International Business Machines Corporation, Amazon Web Services, Inc., Google llc, Cognizant, Dreambox Learning, Inc., Bridgeu, Carnegie Learning, Inc., Pearson Plc, Nuance Communications, Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of artificial intelligence in education industry globally.

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David Correa
Allied Market Research
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